For the first time in decades, India is likely to be power ‘surplus’. This is an important step on the road to access, even though universal supply of uninterrupted, quality power still remains a challenge. Surplus power today implies backing down, which has significant impacts on the Distribution Company (DISCOM) finances and operations as well as consumer tariffs. This is due to the nature of take-or-pay, two-part payment contracts, and lack of avenues or adequate efforts for sale of ‘surplus’ power. The impacts are much more severe in some states, where about 15% to 30% of the capacity is backed down annually. This report focuses on insights from states which are experiencing sustained surplus to highlight important lessons at the national level. This includes Gujarat, Maharashtra, Madhya Pradesh, Andhra Pradesh, Telangana, Haryana and Punjab.